STATE GOVERNMENT RELATIONS
Bills to watch:
- Senate Bill 122 - Nonprofit Loan Center Loans for State Employees.
- House Bill 1033 - Retainage Requirements.
- House Bill 1038 - ESOP Linked Deposit Program.
- House Bill 1074 - Firearms Financial Transactions.
- House Bill 1081 - Distributions to Charitable Beneficiaries.
- House Bill 1125 - Earned Wage Access Services.
FEDERAL GOVERNMENT RELATIONS
CFPB guidance advises states to heighten enforcement
A recent report and a compendium of guidance documents from the Consumer Financial Protection Bureau outline ways for states to toughen their enforcement of consumer protection laws. The CFPB says the wide-ranging compendium could benefit states in addressing big technology companies' collection and sale of sensitive data and determine whether banks comply with the Community Reinvestment Act.
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Barr to refile bill to boost new bank formation
Rep. Andy Barr, R-Ky., is set to reintroduce a bill aimed at easing the formation of new banks. The legislation might now have a stronger likelihood of passage due to Republican control of Congress and the White House. It proposes a three-year phase-in for de novo banks' compliance with federal capital standards, and it would let new banks in rural areas have a leverage ratio of 8% for the first three years.
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Scott outlines deregulatory agenda as Senate banking chair
Senate Banking Committee Chair Tim Scott, R-S.C., has unveiled a policy agenda that includes establishing working groups on issues such as insurance and advancing legislation to roll back financial regulations. Scott aims to improve financial literacy and provide clarity for fintech firms while confirming President-elect Donald Trump's nominees to lead key agencies.
Read more from Politico Pro (subscription required)
FDIC's Hill aims for flexible regulation, innovation
Federal Deposit Insurance Corp. Vice Chair and potential Trump pick to lead the agency, Travis Hill, has outlined his vision for a lighter regulatory approach, focusing on reducing compliance burdens, revisiting Basel III capital rules, and fostering innovation in fintech and digital assets. Hill called for an end to climate-focused financial policies, and advocated for clear, timely guidelines for emerging technologies.
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Fannie Mae, Freddie Mac credit score transition put on hold
A planned implementation of new credit score requirements for single-family loans acquired by Fannie Mae and Freddie Mac has been paused in response to industry feedback, the Federal Housing Finance Agency announced Thursday.
Under the policy, Fannie Mae and Freddie Mac would replace the current FICO credit score model with the FICO 10T and the VantageScore 4.0 credit score models and transition from requiring three credit reports to two for single-family loans. The changes were originally set to take place in the fourth quarter of this year. However, in a notice Thursday, the FHFA said it has pushed back implementation to a "to-be-determined date."
FHFA modifies Federal Home Loan Bank capital requirements to boost liquidity mission
The Federal Housing Finance Agency finalized a rule Tuesday amending the capital requirements for Federal Home Loan Banks so they can better respond to their members' liquidity needs.
The FHFA's capital requirements limit FHLBank extensions of unsecured credit in their on- and off-balance sheet and derivative transactions. Currently, overnight federal funds are excluded from the more restrictive "general limit" on unsecured credit to a single counterparty and are limited only by the higher "overall limit." The rule adds interest-bearing deposit accounts and other authorized overnight investments to that exclusion, "which may provide greater flexibility and improved cost to yield than overnight federal funds," according to the FHFA.